China realizes the diversified development strategy of foundry enterprises
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- Time of issue:2021-08-27
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(Summary description)Intoday’sglobalizedmarketeconomy,China’sstatusasamajormanufacturingcountryhasbeengraduallyweakened,manufacturinghasshiftedtoothercountriesandregions,increasedlaborcosts,andrapidlychangingmarketdemandshavemadeitmoreandmoredifficultforcompaniestosurvive.Inaddition,atthisstageContinuousenvironmentalgovernancehasmademanymanufacturingcompaniesworse.Allkindsofproblemshavecausedthecompany'slaborpainsbutalsoarousedathought:howtoenhancethecompany'santi-riskability,howtorealizethesustainabledevelopmentofthecompany,andletthecompanyfacevariouscrisescalmly?Infact,companiesinEurope,America,Japanandothercountrieshavealreadyusedfactstoanswerthisquestion:taketheroadofdiversifiedoperations.Diversifiedoperationisaninevitabledevelopmentstrategyforenterprisestobecomebiggerandstronger. Externalreasons:Themainreasonisthelimitationofmarketcapacity.Thesaturationofmarketdemandandthelimitedmarketcapacitywillencourageenterprisestoenternewindustrialfields.Atthesametime,thediversityanduncertaintyofmarketdemandwillalsoinducecompaniestodiversifytheiroperationstodiversifyrisksandseeknewdevelopmentspace. Internalreason:Inordertomakebetteruseoftheremainingresourcesoftheenterprise,toachieve"economyofscope"toagreaterextent.Scopeeconomyessentiallymeansthatmultiplebusinessesofanenterprisecansharetheresourcesoftheenterprise,especiallytheuseofsurplusresourcesoftheenterprise,includingbothtangibleresources(productioncapacity,marketing,servicesystems,technologydevelopmentandinnovationsystems,etc.),aswellasintangibleresources(Trademarks,corporategoodwill,managementskills,technology,knowledge,etc.). However,theexpansionofthescaleofanenterprisemustbeconsistentwiththemanagementabilityoftheenterprise,andatthesametime,themanagementabilitymustbeimproved.Otherwise,itwillbedifficulttomakethediversifiedbusinessdevelophealthily,anditwillevenhaveanadverseeffectonthemainbusinessandtheoriginaladvantagesoftheenterprise. Oneistogetmoreprofitsinnewareas.Thesecondistoallocatesomeresourcesindifferentareastoavoidrisks.Thegoalpursuedbymodernenterprisesisnottomaximizeprofitsbuttogrowsustainably.Itisamajortransformationfromasingleenterprisetoadiversifiedbasicgrowthmodel,anditisanexplorationorevenanexpeditiontonewareasofgrowth.Diversificationisanimportantstrategicturningpointinthegrowthofacompany,anditisakeypointwheredangersandopportunitiescoexist. China'sfoundrycompanieshaverelativelysimpleoperationsandpoorriskresistance.Whentheeconomicenvironmentisgood,thereisnoproblemincorporatedevelopment,butwhentheeconomicenvironmentdeteriorates,especiallyinrecentyears,economicrecessionandmalaise,plusthesecondhalfof2016Theinitial"stricterinhistory"environmentalprotectionmanagement,highenergyconsumption,andsingleproductmodelcausedalargenumberoffoundrycompaniestoclosetheirdoorsandshutdownforrectification.Inaddition,whenChinagraduallylostits“worldfactory”anditsmanufacturingindustrybegantoshifttoSoutheastAsiaandothercountries,China’sfoundryindustrywasgreatlyimpacted,andmarketdemanddroppedsharply.Thesingleproductproductionmodelmadeitdifficultfortraditionalfoundrycompaniestocopewithit.ManyfoundrycompaniesCanonlysitandwaittodie.Therefore,inthefaceofthecurrentnewsituation,itisabetterchoiceforfoundrycompaniestonotonlytransformandupgradethemselves,butalsotoreformulatetheircorporatedevelopmentstrategies,improvetheirabilitytoresistrisks,andtaketheroadofdiversifiedoperations. Source:FoundryBranchofChineseMechanicalEngineeringSociety
China realizes the diversified development strategy of foundry enterprises
(Summary description)Intoday’sglobalizedmarketeconomy,China’sstatusasamajormanufacturingcountryhasbeengraduallyweakened,manufacturinghasshiftedtoothercountriesandregions,increasedlaborcosts,andrapidlychangingmarketdemandshavemadeitmoreandmoredifficultforcompaniestosurvive.Inaddition,atthisstageContinuousenvironmentalgovernancehasmademanymanufacturingcompaniesworse.Allkindsofproblemshavecausedthecompany'slaborpainsbutalsoarousedathought:howtoenhancethecompany'santi-riskability,howtorealizethesustainabledevelopmentofthecompany,andletthecompanyfacevariouscrisescalmly?Infact,companiesinEurope,America,Japanandothercountrieshavealreadyusedfactstoanswerthisquestion:taketheroadofdiversifiedoperations.Diversifiedoperationisaninevitabledevelopmentstrategyforenterprisestobecomebiggerandstronger. Externalreasons:Themainreasonisthelimitationofmarketcapacity.Thesaturationofmarketdemandandthelimitedmarketcapacitywillencourageenterprisestoenternewindustrialfields.Atthesametime,thediversityanduncertaintyofmarketdemandwillalsoinducecompaniestodiversifytheiroperationstodiversifyrisksandseeknewdevelopmentspace. Internalreason:Inordertomakebetteruseoftheremainingresourcesoftheenterprise,toachieve"economyofscope"toagreaterextent.Scopeeconomyessentiallymeansthatmultiplebusinessesofanenterprisecansharetheresourcesoftheenterprise,especiallytheuseofsurplusresourcesoftheenterprise,includingbothtangibleresources(productioncapacity,marketing,servicesystems,technologydevelopmentandinnovationsystems,etc.),aswellasintangibleresources(Trademarks,corporategoodwill,managementskills,technology,knowledge,etc.). However,theexpansionofthescaleofanenterprisemustbeconsistentwiththemanagementabilityoftheenterprise,andatthesametime,themanagementabilitymustbeimproved.Otherwise,itwillbedifficulttomakethediversifiedbusinessdevelophealthily,anditwillevenhaveanadverseeffectonthemainbusinessandtheoriginaladvantagesoftheenterprise. Oneistogetmoreprofitsinnewareas.Thesecondistoallocatesomeresourcesindifferentareastoavoidrisks.Thegoalpursuedbymodernenterprisesisnottomaximizeprofitsbuttogrowsustainably.Itisamajortransformationfromasingleenterprisetoadiversifiedbasicgrowthmodel,anditisanexplorationorevenanexpeditiontonewareasofgrowth.Diversificationisanimportantstrategicturningpointinthegrowthofacompany,anditisakeypointwheredangersandopportunitiescoexist. China'sfoundrycompanieshaverelativelysimpleoperationsandpoorriskresistance.Whentheeconomicenvironmentisgood,thereisnoproblemincorporatedevelopment,butwhentheeconomicenvironmentdeteriorates,especiallyinrecentyears,economicrecessionandmalaise,plusthesecondhalfof2016Theinitial"stricterinhistory"environmentalprotectionmanagement,highenergyconsumption,andsingleproductmodelcausedalargenumberoffoundrycompaniestoclosetheirdoorsandshutdownforrectification.Inaddition,whenChinagraduallylostits“worldfactory”anditsmanufacturingindustrybegantoshifttoSoutheastAsiaandothercountries,China’sfoundryindustrywasgreatlyimpacted,andmarketdemanddroppedsharply.Thesingleproductproductionmodelmadeitdifficultfortraditionalfoundrycompaniestocopewithit.ManyfoundrycompaniesCanonlysitandwaittodie.Therefore,inthefaceofthecurrentnewsituation,itisabetterchoiceforfoundrycompaniestonotonlytransformandupgradethemselves,butalsotoreformulatetheircorporatedevelopmentstrategies,improvetheirabilitytoresistrisks,andtaketheroadofdiversifiedoperations. Source:FoundryBranchofChineseMechanicalEngineeringSociety
- Categories:Trade info
- Author:
- Origin:
- Time of issue:2021-08-27
- Views:0
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